Finding Insurance
Although it can seem quite a daunting task, finding an insurance policy that adequately covers the needs of your business and your employees doesn't have to be a grind. If you're intending to search out, organize and maintain the policy yourself, it is important to do some research - you may be able to negotiate a lower premium and a wider range of cover if you know what the insurance industry's limits are. If, however, you find the task too encompassing or you simply do not have the time yourself to wade through the many alternatives, it might be a good idea to hire an independent broker to do the leg-work and to find insurance for you.
High Risk Categories
One of the most important factors to be aware of when you are purchasing insurance is whether your specific business or trade falls into one of the insurance industry-defined 'high risk' categories. Businesses that operate commercial or industrial sites fall into the 'high-risk' definition, as do companies that erect or regularly use scaffolding. Complex or large machinery and cranes are another high-risk area, as are any construction-based businesses and any companies that employ or supply tradesmen. Although it is tempting to think of the 'high-risk' definition as a way of increasing the premiums the insurance company can charge, in reality the insurers see these types of businesses as being more prone to making claims and are therefore entitled to charge more for their cover.
Assessing Additional Cover Needs
Another element to be aware of, especially when you are looking into property insurance, are the 'standard' or 'named' perils that are commonly protected by the insurance policy. While fire, explosion, lightning-strike, theft and storm-damage are often included as standard, you may need to ask for additional cover for civil commotion, earthquake, flood, pollution and contamination. When evaluating the overall value of your property the insurer may also offer an index-linking service; that is the option of having your property repair value updated on an annual basis to keep in touch with inflation. Although not necessary this can be a good way to ensure that the property is insured for its real, up-to-date value rather than its initial valuation.
Industry Standards
Finally, when considering both public liability and employers' liability cover, be aware of the industry standards for claim brackets. If you operate a small company that is entirely contained within its premises (and no employees make off-site visits as part of their job), you can safely insure the business within the £1,000,000 - £2,000,000 claim bracket offered as standard. If, however, your business is larger or is predominately based around employees making off-site calls or deliveries, it may be necessary to upgrade the policy to the £5,000,000 bracket.